Wells fargo financial leasing says my new Branson can't be paid off early?? Who does?

[buckeyefarmer]

Wells Fargo "opened all kinds of loans"?
I am aware that they did some shady stuff, but did they actually open loans without the borrowers knowledge?

Yep, one source says "millions", now they are in hot water for auto loans...

 

[drizler]

Clark Howard calls those clowns a GIANT MONSTER MEGABANK. That’s his pet name for banks that operate quasi-dirty. Personally I wouldn’t trust those people as far as I could throw them. See it in writing, not what some flunky operator assures you of.:thumbdown:

 

[tjkubota93]

Clark Howard calls those clowns a GIANT MONSTER MEGABANK. That’s his pet name for banks that operate quasi-dirty. Personally I wouldn’t trust those people as far as I could throw them. See it in writing, not what some flunky operator assures you of.

He is right. Those people on the phone are know nothings that were told to do xyz. Even if abc is what's right. So you have to have it in writing and know more than them.

 

[CincyFlyer]

I know it's from WF leasing, but I made sure & they said it's a purchase not a lease

With several tractor brands (Mahindra, for example), while there is no prepayment penalty, there is no gain for doing so, either, as there is a "fake" 0% interest rate (as the cash price of the tractor is thousands lower!) So for me, getting a refi wouldn't be worth it, nor would paying off the balance early! On a refi, it will cost me more, and paying it off early uses up dollars that have more value today than in five years.

 

[Gary Fowler]

Not many 0% interest loans are actually 0 and usually they add in $$$ to the purchase price to cover the loan interest.

When i bought my LS tractor, the original quote for cash price was $36K. The dealer then told me they had a 24 month 0% interest loan. I was prepared to pay cash but chose the 0% interest rate. The cost of the tractor was $36,000 and the loan was 24 payments of $1500 so it was a true no interest loan. Of course there was no penalty for early payoff, but why pay off a no interest loan early?

 

[Torvy]

Leases are one of the biggest scams you can get into. They pitch themselves due to lower payments and having someone else pay the depreciation. Like someone said, it is just a long term rental. You end up paying more. There are very few situations where leasing is the best choice. I don't know for sure, but I don't think WF leasing does loans, they have another division for that. If it is a loan and there is a prepayment penalty, you are stuck. Read the contract, though. There may be an exception if you sell. I worked for two of the big banks. One I would trust as a company, the other has gone to the dark side. Good advice above as well if you have a zero percent loan, there is no advantage to paying it off early. That is true whether you have a legit 0% or paid the interest up front. Sunk costs are gone.

Only a few big banks still do shady things like prepayment penalties. That is effectively double dipping for the bank. They take the penalty and then loan that money out to someone else and get paid twice over the same span. (think of loan money the same as any other product, it is limited)

 

[Have tractor did travel]

Reason to pay off a no interest loan is then one doesn't have to carry insurance on the tractor.

Reason for pay off penalties is - banks borrow some of their money for fixed terms. When a customer buys a 3 year CD, that is a loan to the bank. If the bank commits to paying 2% interest for 3 years to that customer, the bank wants to be sure it can loan the money for three years at 4% (figures made up). If the money the bank loans is repaid early, the bank has to find someone else to whom to lend the money. If interest rates have changed, and the bank can only lend for 2%, then the bank loses money (after overhead). Or maybe the bank can't loan the money at all.

To me, doesn't make sense to offend, or gouge, a small customer (one buying a tractor), but on a big scale, it becomes important to the bank.

I agree with all others about reading that which is being signed. Spoken words mean nothing in that circumstance. "Fools and their money are soon parted."

 

[workinonit]

OP, enjoy your lease.

Have tractor, I got insurance as part of my loan. As a matter of fact my buddy that's the sales guy told me not ot let my wife pay it off early or I would lose the full coverage on my zero turn. Same deal on my tractor. I actually financed a small amount on my tractor to get the insurance free.

Gary Fowler, I've never understood this statement. If you get a loan that has 0% interest then it's a 0% interest loan. You haggle for the lowest cash price you can and when they ask how we are going to pay it you tell them you want that 0% financing. Much to the disbeleif of many on this board those loans are actually 0% and there are no smoke and mirrors. They do that as a marketing tool. Imagine how many fewer machines JD would have sold without 0%.

 

[Hay Dude]

Leasing is very popular now with farmers and farm equipment- especially tractors.
Although I myself don’t use leasing, I think there are many reasons for this and more of my fellow farmers are leasing.

 

[workinonit]

I can see leasing a new tractor. I also think contrary to most that there are some situations that lend themselves to leasing a vehicle or piece of equipment very well. Leasing is not for everyone but is great for some.